NIFTY TECHNICAL OUTLOOK

 Based on Market Closing on Thursday, December 05, 2024

The Nifty closed at 24,708.40 in the preceding session, gaining 240.95 points (0.98%), indicating sustained bullish momentum.

The index opened positively at 24,539.20, briefly touched an intraday low of 24,295.60, and then rallied to a high of 24,857.80 before settling above the key resistance level of 24,500. Sectoral performance was strong, with banks, financial services, and auto-leading gains, while realty and PSU banks lagged. Market breadth was positive, with 1,495 stocks advancing, 1,310 declining, and 77 remaining unchanged. Key gainers included TRENT, INFY, TCS, and TITAN, while SBILIFE, HDFCLIFE, BAJAJ-AUTO, and NTPC were the major losers.

From a technical perspective, momentum indicators suggest a continued positive trend, supported by the Nifty’s position above its short-term moving averages. The formation of a white candle on the daily chart, closing above the prior resistance of 24,500, reinforces the bullish outlook. If the index sustains above this level, it could target the next resistance at 25,000. However, failure to hold above 24,500 may lead to consolidation before another upward move.

Overall, the Nifty is poised for further gains if it remains above critical levels, with a short-term focus on breaking 25,000.

Key intraday support levels are at 24,700, 24,600, and 24,500, with resistance at 24,800, 24,900, and 25,000.

For positional trading, support lies at 24,500–23,800, while resistance is at 25,000–25,500.

Bank Nifty Technical Outlook

In the preceding session, Bank Nifty closed at 53,603.55, gaining 336.65 points (0.63%), reflecting continued bullish momentum. Technically, momentum indicators support a positive trend, with the index holding above its short-term and long-term moving averages. A white candle formed on the daily chart, closing higher than the previous session's candle, further reinforcing the potential for a sustained bullish trend.

On the downside, the index has short-term support at 53,500. If it maintains this level, it may retest the all-time high of 54,467 in the near term.

Overall, Bank Nifty remains well-positioned for further upside if it holds above the critical support of 53,500. Breaking above the immediate  intraday resistance  53800 levels could set the stage for a retest of historical highs.

Immediate intraday support levels are at 53,450, 53,200, and 52,900, while resistance is seen at 53,800, 54,100, and 54,400.

For positional traders, short-term support lies in the range of 53,500–52,500, while resistance is expected at 54,400–55,500.